One of the very top reasons that people are not able to keep their business open is because their business runs out of money and fast. If you do not have any money in the bank, you can’t invest in your business, grow it, or buy the supplies you need to keep it open. If you do not stay on top of your finances and write down where every single dollar is being spent you can find your new business in serious financial trouble very quickly. You may have the best business idea there has ever been, but if you run out of money to make that idea a reality, then you can’t take your business anywhere. Make a very strict budget, start small, and stick to that budget like glue! Only increase the budget little by little as your business grows so that you never spend more than you make.
When you start a new business you are going to have expenses and bills hitting you from every direction, but hiring an accountant and or a full-time bookkeeper right off is not financially wise and could actually cost you more money than you make in the beginning. Instead, you can invest in accounting software so that you can enter all of your expenses on your own and keep everything organized in one place. This will help make sure you stay on budget and will also keep all your finances and receipts in one organized place so that when tax season comes around you have everything you need to give to your tax professional.
As we said before, your start-up business venture could be the best business idea that anyone has ever heard of, but that being said you just cannot tell for 100% certainty that you will succeed when your start-up opens up. This is why it is wise to prepare financially for the worst outcome imaginable- your business tanking and losing it. Do this by keeping your full-time regular job so that your main source of income is still there giving you a safety net, and do not quit that job until your start-up is making enough money that you can replace or even surpass that income stream.
You should also keep an emergency business account set aside in your bank and put money away in it every chance that you can. This is because you have to look to the future as an entrepreneur which means you need to be prepared to set up your own retirement fund, investments funds, and funds to use in case your business’ finances take a turn for the worse. Having the safety net for business emergencies only could be the difference between success and failure.
As the old saying goes, “time is money!” The worst thing you can waste is your time as you cannot get that back. You only get 24 hours a day, so when you plan your schedule you need to make sure you are being as efficient as possible and making the most of every moment could be the difference in making a lot of money and struggling to keep your start-up afloat. Every minute of the day that you spend not working or piddling around doing unrelated things to your startup is a minute that you are not making money or growing your business, in other words, it is a total waste!
Just because you work hard and put in a lot of hours and have a deep passion for your new business does not mean you are bringing home the bacon for you and your family. You have to cut yourself a paycheck so that you can survive! When you are just a small start-up this is not going to be a large check, in fact, it may not be much at all. But you have to cut yourself some type of check so that you can live and as your business grows, what you pay yourself will grow so you can live comfortably off of your business earnings and be able to put more energy on growing your business to the next level.
It is totally normal and okay to dream about the day that your business is more like an empire and raking in millions of dollars. However, it is not ok to get totally fixated on the big dollar signs in your eyes, you need to make goals that are attainable and reachable from the very beginning. Crush one small goal after another to get where you want to be. These goals need to be small: start with daily revenue goals, then look at your weekly and monthly income goals. These small goals will keep you on track and make sure you are growing consistently as a company.
Building a business is going to take time, and it requires a lot of financial investment and personal investment. Following these tips will set you up for financial success and give you the confidence you need to succeed as a company and as a new business owner!